Edison Issues Initiation on Laboratoris Farmacuticos ROVI (ROVI)

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Accesswire 12-Jul-2017 6:00 AM
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LONDON, UK / ACCESSWIRE / July 12, 2017 /ROVI, (MSE: ROVI) a profitable, specialty healthcare company, markets ~30 proprietary and in-licensed products across nine core franchises mainly in its domestic Spanish market. ROVI is at a major inflection point; its internally developed biosimilar enoxaparin could be first to launch in key European markets (launch expected end 2017), transforming the sales growth and operating margins of the business. ROVI has a strong presence in the Spanish heparin market (and select international markets through partners), where it has been manufacturing and marketing its flagship product Hibor (second-generation LMWH) since 1998. Other top-line drivers include further product in-licensing and the potential launch (2021) of Risperidone-ISM (schizophrenia). We value ROVI at 1.0bn (20.1/share).
We value ROVI at 1.0bn or 20.1 per share based on a three-stage DCF, forecast to 2025, at a 10% discount rate, a long-term tax rate of 15% and a 2.0% terminal growth rate. Our valuation is underpinned by the sales potential of biosimilar enoxaparin and the base business retaining stable low single-digit growth rates from further in-licensing deals. A stable dividend with a three-year average 33% pay-out ratio additionally adds value.
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For more information please contact Edison:
Dr Susie Jana, +44 (0)20 3077 5700
Dr Daniel Wilkinson, +44 (0)20 3077 5734
Juan Pedro Serrate, +44 (0)20 3681 2534
healthcare@edisongroup.com
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SOURCE:Edison